India: BigMint's ferrous scrap index declines by INR 600/t amid muted steel demand - 9 Oct

• Alternate raw material prices stable d-o-d
  
  
• Ingot prices drop by INR 300/t today
  
  

BigMint's domestic end-cutting scrap index, tracking the Mandi Gobindgarh market, dropped by INR 600/t to INR 38,700/tonne (t) DAP on 9 October 2024. In today's Mandi market, buyers were silent during both halves of the trading session. Aggressive inspections and a lacklustre buying trend are putting pressure on steelmakers to reduce their prices in the semi-finished and scrap segments.

Raw materials overview

In the Mandi market, sponge iron (CDRI) prices remained steady at INR 33,500/t DAP. Conversely, in Ludhiana, pig iron (steel-grade) prices were stable at INR 40,300/t DAP.

Steel market overview

In the Mandi region, steel ingot prices decreased by INR 300/t to INR 44,200/t DAP during the price reporting and normalisation phase. Meanwhile, prices in other key markets fell by INR 300 to 550/t, with the most significant decrease seen in the Rourkela semi-finished steel market, which moved down by approximately INR 550/t d-o-d.

Rebar (Fe 500) prices in Mandi remained unchanged at INR 48,900/t exw with average trade activity.

Overview of Alang scrap market

On 9 October, 2024, the Alang market in Gujarat saw a decrease of INR 300/t in ship-breaking melting scrap prices d-o-d. BigMint reported that HMS (80:20) prices are currently at INR 35,000/t ex-yard. The previous trading day experienced limited trade in semi-finished and finished steel, driven by specific needs. This moderate activity in scrap has led suppliers to adjust their offers downward today.

Price highlights

End-cutting-billets spread: In Mandi, the end-cutting scrap and billet spread was at INR 5,500/t.

Domestic vs imported scrap: Imported melting scrap prices at Nhava Sheva Port were at $380-$385/t, which equates to approximately INR 34,530/t (including freight). Local scrap HMS (80:20) prices in Mumbai remained stable at INR 34,000/t DAP. In India, indicative prices of shredded scrap from Europe stood at $400-$405/t CFR Nhava Sheva.

Raipur sponge iron-billet spread: The conversion spread (margin) between pellet-based DRI (P-DRI) and steel billets in Raipur stood at INR 13,100/t.

To check BigMint's melting scrap assessment, pricing methodology, and specification documents, click here.